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Owner Need Not Respond to Contractor’s Claims Within Any Timeframe

Contractors often face strict or limited notice periods, in which to advise the project owner of a claim or issue. Some contracts even include forfeiture provisions, where the contractor’s failure to give timely notice acts to nullify the claim. Bu… Read More
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Massachusetts Appeals Court Enforces Prompt Pay Act Protocol

In a closely-watched, hotly-disputed case, the Massachusetts Appeals Court has enforced critical elements of the state’s prompt pay act (PPA). As a result, the contractor was entitled to judgment against the project owner for the amounts not paid,… Read More
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Waiver of Arbitration Right Does Not Require Prejudice

The U.S. Supreme Court, in a unanimous decision, has held that waiver of the right to arbitrate should not be based on prejudice to or detrimental reliance by the party opposing arbitration. This will significantly affect the ability of a party to co… Read More
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Limitation of Liability (and Consequential Damage Waiver) Clause Did Not Bar Claim for Bad Faith

Limitation of liability clauses have become more common in construction industry contracts over the past 10-15 years. Such clauses are quite common in design contracts. It is also common for a limitation of liability clause to refer to multiple poten… Read More
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Subcontractor’s Right to Direct Payment from Public Authority

Subcontractors on public projects in Massachusetts have the right to seek payment directly from the awarding authority when the prime contractor has not made timely payment. A Massachusetts Superior Court judge has reinforced the awarding authority… Read More
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Natural Gas “Blows” Causing Explosion Were Not “Abnormally Dangerous Activity”

Almost twelve years ago, an explosion ripped through a power generation facility construction project in Middletown, Connecticut, known as Kleen Energy. Six workers were killed and many more were injured. The explosion was caused by a fuel line purge… Read More
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Owner’s Assignment to Contractor, of Claims Against Architect, Not Barred by Anti-Assignment Clause

A school district and architect signed a contract, with a common anti-assignment clause, for design of an elementary school building . During construction of the project, disputes arose between the district and contractor, and the contractor claimed… Read More
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New Jersey Prompt Payment Act Supports Recovery of Fees that Exceed Contract Balance Due

A subcontractor owed $30,500, who had to jump through multiple hoops to recover its money, was entitled to recover legal fees and costs exceeding the contract balance due. JHC Industrial Services, a second-tier sub, performed demolition work for Cent… Read More
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Complaint Dismissed for Failure to Mediate First

“Mandatory mediation” may seem an oxymoron, since mediation is a process whereby parties seek to resolve their dispute in an elective process. But a federal court judge has held that a contract clause mandating mediation prior to litigation is to… Read More
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Reckless Misclassification under Davis-Bacon Creates False Claims Act Liability

A US Court of Appeal has held that “reckless misclassification” of workers under Davis-Bacon can – due to amendments of the False Claims Act (FCA) in 2009 – can result in a contractor being liable under the FCA. And this liability could cover… Read More
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